Bank Nifty began today’s session lower at 47,927 versus last week’s close of 48,200. It recovered a little and is now trading at 48,040, down 0.3 per cent so far today.

State Bank of India, up 1 per cent, is the top gainer whereas ICICI Bank, down 0.9 per cent, is the top loser.

Broadly, the public sector banks are outperforming their private sector peers. Thus, Nifty PSU Bank index is up 1.7 per cent whereas Nifty Private Bank has lost 0.6 per cent.

Bank Nifty futures

Bank Nifty futures (May contract) began today’s session with a minor gap-down at 48,174 as against Friday’s close of 48,288. It is currently trading at 48,170, down 0.25 per cent.

48,300 is resisting the bulls from going ahead. If this level is breached, Bank Nifty futures can rally to 49,000 and then to 49,250.

But if the contract falls from here, it can find support at 47,800. Subsequent support is at 47,500.

Trading strategy

Stay on the fence for now. Initiate fresh longs when Bank Nifty futures break out of 48,300. Place initial stop-loss at 48,000. When the contract goes above 48,500, tighten the stop-loss to 48,200. Book profits at 49,000.

Supports: 47,800 and 47,500

Resistance: 49,000 and 49,250

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